The effect of knowledge management on competitive advantage and business performance: A study of silver craft SMEs

Abstract

Objective: The objective of this article is to analyse the effect of knowledge management on the performance of silver craft SMEs through competitive advantage as a mediator. This study also explores the dimensions and indicators of each latent variable: knowledge management, competitive advantage, and business performance.

Research Design & Methods: This research uses quantitative methods with SEM-PLS analysis techniques. The population in this study is silver craft SMEs in Indonesia, with 146 silver craft SMEs as a sample. Data was collected by questionnaires and FGD.

Findings: This study found that knowledge management has no direct significant effect on business performance but – through competitive advantage – the effect of knowledge management on business performance of silver craft SMEs is positive and significant.

Implications & Recommendations: The outcomes show that knowledge management ought to be connected to form items with competitive points of interest so that it can help to execute silver craft SMEs trade. The expected knowledge management is to incorporate knowledge acquisition, knowledge sharing, and knowledge application.

Contribution & Value Added: This research surveys commerce execution not from a budgetary perspective but from a non-financial perspective. Research on knowledge management within the SMEs division is still uncommon.

Keywords

business performance; competitive advantage; knowledge manage-ment; SEM analysis; SMEs

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